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\n

Within a few days last week, the World Wildlife Fund hyped up and then quietly canceled plans to raise money for conservation efforts by minting its own NFTs. The UK chapter of WWF unleashed a firestorm on itself by releasing \u201cTokens for Nature<\/a> depicting 13 endangered species. The tokens look like glass cubes encasing each animal: a giant panda, Javan rhino, and Gal\u00e1pagos penguin, to name a few. And they really pissed off other environmentalists.<\/p>\n
\u201cMy initial response [to World Wildlife Fund\u2019s NFTs] was they must be joking \u2026 They\u2019re supposed to be all for sustainable innovations, and they\u2019re getting involved with one of the least sustainable things on the planet,\u201d says digital currency economist Alex de Vries, who has been outspoken about the risks some cryptocurrencies pose to the environment. <\/p>\n
\n\u201cThey must be joking\u201d<\/q><\/aside>\n<\/div>\nThe World Wildlife Fund seemed to believe it had found a solution to the climate controversy<\/a> swirling around NFTs by working with the Polygon, a so-called Layer 2 blockchain that\u2019s tied to the Ethereum network. But while Polygon claims transactions on its blockchain use very little energy, de Vries told The Verge<\/em> that Polygon is responsible for some of the pollution generated by the notoriously energy inefficient Ethereum and isn\u2019t counting it. Factoring in its relationship with Ethereum, de Vries estimates that a single transaction on Polygon is a whopping 2,100 times higher what WWF estimated.<\/p>\n
At the heart of the discrepancy is whether \u2014 and in what circumstances \u2014 Layer 2 blockchains reduce energy use. <\/strong>While most NFTs are part of the Ethereum blockchain, the way Ethereum verifies transactions is slow, expensive, and energy-intensive. As Ethereum gets more crowded, companies are looking for new ways to scale it up. You can think of a Layer 2 blockchain like Polygon as a sort of carpool lane added to the Ethereum highway. <\/p>\n
Like a carpool lane, Layer 2 networks are supposed to be able to fast-track transactions. This ostensibly saves time, money, and \u2014 crucial for Polygon\u2019s environmental claims \u2014 energy. In one blog<\/a> post explaining its energy use, Polygon calls itself \u201cthe eco-friendly blockchain scaling Ethereum.\u201d Because Ethereum uses an energy-hungry system to validate transactions, it has an annual carbon footprint comparable to Singapore, by de Vries\u2019 estimate<\/a>. Polygon says its own energy and environmental footprint is just a tiny fraction of that because it uses a different process for validating transactions. <\/p>\n
\nThink of a Layer 2 blockchain like Polygon as a sort of carpool lane added to the Ethereum highway<\/q><\/aside>\n<\/div>\nBut while passengers in the carpool lane might be individually responsible for fewer emissions than people driving alone on the rest of the highway, adding a new lane still makes room for more polluting cars on the highway. Likewise, Layer 2 solutions still work in tandem with their main blockchain, and when that blockchain is energy inefficient, that creates more pollution, according to de Vries. <\/p>\n
And Ethereum is wildly inefficient when it comes to energy use. To validate transactions and mint new tokens, Ethereum \u201cminers\u201d race to solve ever-more-complex puzzles. All the computing required to solve those puzzles is what makes the blockchain\u2019s energy use skyrocket. Bitcoin uses the same kind of process, called \u201cproof of work.\u201d<\/p>\n
In contrast, many newer blockchains, including Polygon, use a process called \u201cproof of stake\u201d to validate transactions. Rather than solve complex puzzles, people need to lock up tokens they already have as collateral in order to be in the running to validate transactions and mint new tokens. No puzzles, no skyrocketing energy use. Experts critical of Ethereum\u2019s and Bitcoin\u2019s environmental impact have generally been much more optimistic about independent<\/em> cryptocurrencies using proof of stake.<\/p>\nBut since Polygon isn\u2019t independent, its claims that it is an \u201ceco-friendly blockchain\u201d are fraught at best. De Vries points out that Polygon has contracts on the Ethereum network representing millions of transactions. Those contracts are necessary to move assets back and forth between Polygon and Ethereum and perform other critical functions for Polygon. De Vries takes those contracts, which are verified using proof of work, into account in an analysis of Polygon\u2019s carbon footprint he published Friday<\/a> on his blog. While WWF UK said in its NFT announcement that a single transaction on Polygon produces just 0.207 grams of CO2, De Vries calculated those same transactions produce close to 430 grams of CO2.<\/p>\n
Ulrich Gallersd\u00f6rfer, CEO of Crypto Carbon Ratings Institute, agrees that calculating the energy consumption of Polygon\u2019s blockchain in isolation offers an incomplete picture. \u201cWhile Layer 2 solutions can be seen as independent networks, they still rely on the security of the underlying Layer 1 network and therefore its electricity consumption and carbon footprint,\u201d Gallersd\u00f6rfer said in an email to The Verge<\/em>. <\/p>\n
\nCalculating the energy consumption of Polygon\u2019s blockchain in isolation offers an incomplete picture<\/q><\/aside>\n<\/div>\nAnother argument for moving transactions to Layer 2 networks is that energy savings can be achieved by bundling several transactions together \u2014 say, two people exchanging several NFTs. But ultimately, those bundles are brought back to Ethereum\u2019s ledger as a single transaction recorded on Ethereum\u2019s energy inefficient blockchain.  <\/p>\n
On a more basic level, Layer 2 solutions help polluting blockchains get bigger. Polygon allows users to store, spend, and trade Ethereum-compatible tokens more cheaply. As one of the more advanced Layer 2 solutions, it also connects other Ethereum-compatible blockchains and apps to each other and to the main chain. All those capabilities might persuade someone to stick with Ethereum and Polygon rather than turn to a truly independent blockchain that runs on proof of stake. Ethereum says it will transition to proof of stake, but that move has been delayed for so long that de Vries and others are skeptical it will ever happen.<\/p>\n
WWF sang Polygon\u2019s praises when its Germany and UK arms first decided to mint NFTs. \u201cAfter extensive research and appropriate due diligence, we firmly believe that the benefits to our organisation and to our work brought about by entering the NFT space are worth the limited environmental impact of minting NFTs on Polygon,\u201d WWF UK wrote on a now-defunct webpage breaking down how it calculated energy use and emissions from its NFTs. Polygon didn\u2019t respond to multiple requests for comment from The Verge,<\/em> and WWF UK declined to be interviewed.<\/p>\n
On Friday, just a day after releasing \u201cTokens for Nature,\u201d WWF UK decided to \u201cbring this trial to a close.\u201d <\/p>\n\u201cWe recognise that NFTs are a much debated issue and we all have lots to learn about this new market,\u201d the environmental group said in a statement<\/a>. WWF Germany\u2019s \u201cNon-Fungible Animals<\/a>,\u201d on the other hand, which launched in November, are still raising money for conservation, although the organization says this isn\u2019t the ultimate goal. \u201cFor us it was never about the funds. It was about raising awareness regarding the species extinction,\u201d a spokesperson for WWF Germany said in an email to The Verge<\/em>.<\/p>\n<\/div>\n

<\/br><\/code><\/p>\n
Source: https:\/\/www.theverge.com\/2022\/2\/8\/22923530\/world-wildlife-fund-nft-polygon-layer-2-blockchain-energy-emissions<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: Within a few days last week, the World Wildlife Fund hyped up and then quietly canceled plans to raise money for conservation efforts by minting its own NFTs. The UK chapter of WWF unleashed a firestorm on itself by releasing \u201cTokens for Nature depicting 13 endangered species. The tokens look like glass cubes encasing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,26],"tags":[43],"class_list":["post-599","post","type-post","status-publish","format-standard","hentry","category-environment","category-science","tag-environment"],"yoast_head":"\nHow the World Wildlife Fund tried \u2014 and failed \u2014 to create an eco-friendly NFT - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/03\/02\/how-the-world-wildlife-fund-tried-and-failed-to-create-an-eco-friendly-nft\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How the World Wildlife Fund tried \u2014 and failed \u2014 to create an eco-friendly NFT - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Within a few days last week, the World Wildlife Fund hyped up and then quietly canceled plans to raise money for conservation efforts by minting its own NFTs. 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